Cryptocurrencies could make massive changes to online transactions, mainly for the benefit of consumers over sellers. Find out more here.
Cryptocurrencies have been around for quite some time in terms of the digital era, but they are now beginning to make some serious waves in the world of online transactions now. How will cryptocurrencies benefit customers in future transactions? Let’s take a closer look.
What are Cryptocurrencies?
Cryptocurrencies are digital currencies that can be used for exchanges online. The most famous of these is Bitcoin, and you will often see the term crypto being used to refer to just bitcoin, but there are several different variations out there.
One of the big draws of cryptocurrencies is that it is decentralised, so no major authority has any influence over it. It can be used for many different types of transactions online, and interest in the use of cryptocurrencies has been growing over the past few years. We are now beginning to see more and more online sellers accept and trade with these currencies, in addition to others, and it has the potential to shift the online commercial landscape quite significantly.
Becoming More Common
Cryptocurrencies are going to be able to benefit consumers simply because they are becoming a lot more commonplace online. Sites like GGPoker, a leading global brand, is accepting cryptocurrencies; it is not uncommon to see crypto wallet options right alongside e-wallet options like PayPal.
There are so many different industries that are looking into whether or not they can make use of cryptocurrencies. Just one market leader could set off a chain reaction that makes others reconsider whether or not this is something they want to try. Though it appears that they are pulling back now, Tesla were looking into the use of cryptocurrencies for a long time. Had they followed through and made it a solid part of their commercial strategy, it could have changed many other aspects of the industry. It still has the potential to; who knows, we might be able to pick up the latest Nissan using cryptocurrencies in a few years?
Anonymous but Honest
Critics of cryptocurrencies dislike them as the transactions can be anonymous. Information is tied to the wallet used to make the exchange, not the person who owns the wallet. This means that crypto can sometimes be used to broker illegal trades, and it is an issue that has caused many governments to either outright ban the use of cryptocurrencies or look for some way in which they can better regulate them.
However, honesty is built into cryptocurrency usage from the start thanks to the blockchain. This is the ledger of transactions, and it is a key part of why these exchanges made with cryptocurrencies are trusted. For starters, many exchanges nowadays do require encrypted data about the exchanging parties to be stored on the chain, so it is – in theory – possible to see who is making the exchanges. A part of each transaction is also stored in the block above it on the chain. This makes it impossible to edit, as you would have to edit every block on the chain, and it makes it a fair and accurate record.
What Does This Mean for Consumers?
Cryptocurrencies are fantastic as it means that there is a fair and accurate record of a transaction that benefits the consumer. They are able to prove that the transaction did take place, and that they are owed the agreed terms as recorded in the block. There are few other payment methods that offer this level of protection and support yet, and it will be very interesting to see how cryptocurrencies can grow and become more commonplace in the future.
